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Company Risk - Liquidity
Overview
Lack of liquidity influences the ability to “get set” on the buy and “exit” on the sell. The liquidity of a company’s shares can vary over time. Influences include: • The extent and breadth of substantial share holdings: and • “Take over” plays which range from friendly to combative. Turnover can be considered in multiple perspectives such as volume by period and frequency of days traded. Market Shares provides a qualitative profile of turnover and days traded by period for your consideration and incorporation into the composition of a share strategy

Liquidity of a company’s turnover on the stock exchange is relevant to the size of investment made and may be relevant to a decision as to whether an investment should be made.

The liquidity of a company’s shares can vary over time. Influences include:

  • The extent and breadth of substantial share holdings: and
  • “Take over” plays which range from friendly to combative.

Turnover can be considered in multiple perspectives such as volume by period and frequency of days traded.

Trade Size and Days Traded graphs

Market Shares provides a qualitative profile of turnover and days traded by period for your consideration and incorporation into the composition of a share strategy.